Understanding your commercial property’s energy efficiency is more important than ever. A commercial Energy Performance Certificate (EPC) ensures compliance with UK regulations and helps reduce energy costs, improve sustainability, and enhance a property’s value. Whether buying, selling, or leasing, an up-to-date EPC is essential.
This guide explains commercial EPCs, including the process, costs, and benefits. Does your business require an EPC assessment and commercial SBEM calculations? Contact Falcon Energy today for professional, accredited EPC services to ensure your property meets all legal requirements.
What is a commercial Energy Performance Certificate (EPC)?
A commercial Energy Performance Certificate (EPC) is a legal document that assesses and rates the energy efficiency of a commercial property based on the property’s construction, heating, lighting, and insulation. It indicates how energy-efficient a building is by using a rating scale from A (most efficient) to G (least efficient):
- A (92-100) – Most efficient: Excellent energy performance with minimal energy use and very low running costs.
- B (81-91): Highly energy-efficient with good performance and relatively low energy consumption.
- C (69-80): Above-average efficiency with moderate energy use and running costs.
- D (55-68): Average energy efficiency, but room for improvement to reduce consumption.
- E (39-54): Below-average efficiency with higher energy consumption and costs.
- F (21-38): Poor energy efficiency, requiring significant improvements to reduce energy use.
- G (1-20) – Least efficient: Very poor energy performance, high energy consumption and significant environmental impact.
The EPC also includes a numerical score corresponding to the rating, providing more detail about the building’s energy use and carbon emissions and recommendations for improvements to help reduce energy consumption and operational costs.
A commercial EPC is required for commercial buildings in the UK when they are built, sold, or let. It applies to a wide range of properties, including offices, retail spaces, warehouses, and hospitality venues, with a usable floor area of over 50 square meters.
As of 1st April, 2023, the required minimum EPC rating for commercial properties is E.
Why are commercial EPCs important?
Legal compliance
In the UK, a commercial EPC is a legal requirement for commercial properties being sold, rented, or newly constructed. Without a valid EPC, property owners risk fines and penalties. The EPC ensures transparency regarding energy performance for buyers and tenants.
Environmental benefits
By promoting energy-efficient improvements, commercial EPCs help reduce carbon emissions and support sustainability goals. A higher energy rating indicates a property’s reduced environmental impact, aligning with broader efforts to combat climate change.
Financial advantages
Properties with better energy efficiency ratings benefit from lower energy bills and operational costs. Implementing EPC recommendations improves a building’s rating and can increase its market value and attractiveness to tenants and buyers.
How is a commercial EPC assessed?
Property inspection
The assessment begins with a thorough inspection of the commercial property. The assessor examines key energy systems, such as heating, cooling, lighting, and the building’s insulation, which are essential in determining overall energy performance.
Energy efficiency calculation
Using the collected data, the assessor calculates the property’s energy efficiency rating from A to G. This includes estimating energy usage and CO₂ emissions and identifying areas where improvements can be made to enhance efficiency and lower running costs.
Role of a Qualified Assessor
An EPC assessment is performed by a qualified and accredited energy assessor, such as Falcon Energy. Expertise ensures an accurate evaluation and reliable certification, helping property owners comply with legal requirements and identify opportunities for energy-saving improvements.
Learn about domestic EPC assessments
Improving energy efficiency in commercial properties
Effective ways to improve energy efficiency include:
- Upgrading insulation to minimise heat loss
- Installing energy-efficient lighting, such as LED systems
- Modernising heating and cooling systems for optimal performance
- Incorporating renewable energy sources, like solar panels
- Implementing smart energy-saving solutions, such as programmable controls and thermostatic radiator valves (TRVs)
These targeted improvements enhance performance and future-proof buildings against rising energy costs. They can also make commercial properties more attractive to tenants and investors while supporting long-term savings and sustainability goals.
How long does a commercial EPC last?
A commercial EPC is valid for 10 years from the date it is issued. During this time, the EPC can be used to sell, rent, or lease the property, provided no significant changes are made to the building’s energy systems or structure.
If substantial upgrades or modifications occur, such as installing new heating systems, insulation, or lighting, a new EPC may be required to reflect the improved energy efficiency. Ensuring your EPC remains up-to-date is essential for legal compliance and maximising your property’s energy performance.
Commercial EPC costs
The cost of a commercial Energy Performance Certificate (EPC) depends on factors such as the size and complexity of the property and its location. Larger or more intricate buildings, like warehouses or multi-floor offices, require more detailed assessments, which can increase costs. Location also plays a role, as travel time and regional demand for assessors may affect pricing.
In the UK, a commercial EPC will probably cost between £100 and £1,000, depending on the building’s specifications. Investing in a high-quality assessment is essential, as it ensures accurate results and helps reduce long-term operational costs.
Are there any EPC exemptions for commercial properties?
Under the Minimum Energy Efficiency Standards (MEES), certain commercial properties may be exempt from meeting the required Energy Performance Certificate (EPC) ratings. These exemptions ensure that compliance does not result in disproportionate costs or unintended consequences for property owners.
One common exemption is the devaluation exemption, which applies if the improvements required to meet the minimum EPC rating would reduce the property’s market value by more than 5%. In such cases, owners can apply for an exemption with supporting evidence from an independent surveyor.
Listed buildings and certain protected properties may also be exempt if upgrades would unacceptably alter their character or appearance. However, confirming this exemption with a qualified assessor is essential to ensure compliance with legal regulations.
Book your commercial EPC test with Falcon Energy
A commercial EPC is essential for ensuring legal compliance, reducing energy costs, and enhancing your property’s sustainability. By improving your EPC rating, you can lower operational expenses, boost market value, and contribute to a greener future.
Contact Falcon Energy to book your commercial EPC assessment with our qualified experts. Our experienced assessors work throughout the UK and offer excellent customer service with a professional approach.